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Apple and AT&T score big with iPhone launch

Everyone knew that the iPhone was going to be big from the moment it was announced in early January. Apple CEO Steve Jobs hailed the device as the ultimate in mobile communications given that it could function as a phone, a mobile Internet device and as an iPod.

As the months progressed, the hype mushroomed even though the iPhone lacked a user-replaceable battery, physical keyboard, expansion slot, voice dialing, A2DP, MMS, iChat, flash support, copy and paste ability and video recording -- not to mention that the iPhone was tied solely to AT&T.

It appears that all of the minuses stacked against the iPhone weren't enough to phase buyers who lined up days in advance to purchase the latest "it device" from Cupertino. Not even the $499 (4GB) and $599 (8GB) price tags were enough to keep Apple from selling around 525,000 iPhones from 6:00 PM Friday evening through close of business on Sunday.

Nearly all of AT&T's stores were depleted of iPhone stock by Saturday whereas Apple's retail stores are currently faring much better (you can check iPhone availability here).

Apple's iPhone launch didn't go off glitch free, however. Many users complained of activation problems with iPhone. The iPhone can be activated through iTunes and the steady rush of users scrambling to activate their phones overloaded AT&T's servers.

"We are working on any issues on an individual basis with customers who were impacted," said Michael Coe, a representative for AT&T.

AT&T spokesman Mark Siegel noted that a "small percentage" of customers were having activation issues. "Our first priority is to get them up and rolling as quickly as we can," Spiegel continued.

For its part in the matter, an Apple spokesman simply said "There are a small percentage of iPhone customers who have had a less than perfect activation experience."

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RE: In 1 years time
By MADAOO7 on 7/2/2007 6:07:36 PM , Rating: 2
That's a idiotic statement. Look at the iPods success. There are plenty of mp3 players out there that cost half as much and pack twice the features and yet the iPod still has an overwhelming market share. Also, you can't replicate a lot of the iPhones features because they are patented by AT&T and Apple. What you'll see in the next year is a lot of repackaged and redesigned Blackberries and Treo's that cost less and look pretty, but don't do anything new. After a year or at least three fiscal quarters you'll see more phones support hi-res video, glossy screens, thinner designs, and smoother OS operation. I'm sure Microsoft is going to make a new Vista-esque (Aero anyone?) interface to make these iPhone competitors do more of the same with more "flash." Of course, within 12-16 monthes, right as these new iPhone competitors come out, Apple will drop the price, just as they did with Zune, catching everyone off guard. At least, this is my perspective.

RE: In 1 years time
By Oregonian2 on 7/2/2007 6:54:02 PM , Rating: 2
Can't wait to see the hoopla when and if the iPhone comes out with a new revolutionary cell phone idea: MP3 ringtones! Or voice commands that needs no voice training! Or even iPod'ish things like bluetooth with A2DP (if I've got my acronyms straight).

Both of which are now in much cheaper phones now.

Whether an iPod is successful means nothing. Cell phones and iPods are NOT the same thing. Apple has way way under 1% marketshare in cell phones. Cell phones is a mature market with many big players already established. Apple clearly was adding a cell phone to a super iPod, their knowledge of cell phone usage I think is lacking.

When people complain about non-replaceable batteries, someone instantly says "well it's okay for an iPod!!!!". Well, fooey! That 's something different. If one has to send one's iPod off to have it's battery replaced (and really have someone else's iPod refurb sent back perhaps) it's okay to be without it for a week. Big deal, no music. It's a very big difference having one's phone gone for a week expecially for those who don't even have a "landline" anymore and use their cell phone exclusively.

P.S.- I don't hate Apple and iPods. I bought two 60GB 5G iPods and liked them very much.

RE: In 1 years time
By MADAOO7 on 7/2/2007 10:10:46 PM , Rating: 2
The iPod's successs has everything to do with this cellphone being successful. I used the reference to exemplify brand loyalty and recognition. The iPod created a generation of consumers who know Apple as a trusted household name. People who love the iPod immediately are drawn to any new product that Apple comes out with. The same goes with Sony or any electronic company...if I had a great experience with a Sony Camera, I'm certainly more prone to look at Sony HDTV's, even if they happen to be more expensive. The point you made about Apple having less than 1% marketshare in cellphones has nothing to do with anything. Of course they don't - the phone has been out for only 72 hours!

With that said, you make a very valid point about the battery.

“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls
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